Drake companys income statement

Assignment Help Accounting Basics

Reference no: EM131022930

Drake Company's income statement for the most recent year appears below:

Sales (26,000 units)...........................	$650,000
Less: Variable expenses..................	442,000
Contribution margin..........................	208,000
Less: Fixed expenses........................	234,000
Net operating loss.............................	$ (26,000)

Drake’s unit contribution margin is:

1.	$17
2.	$8
3.	$1
4.	$9

Reference no: EM131022930

Questions Cloud

What would be the cost of equity from new stock : Javits and Son’s common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $3.00 per share at the end of the year (D1= $3.00), and the constant growth is 5% a year. (A) What is the company’s cost of common equity if..

Examples of political lobbying of us standard-setters : Give examples of political lobbying of US standard-setters, explaining in what ways the lobbying went beyond arguments about the correct technical solutions.

Estimated intrinsic value of equity on price-per share basis : You have just learned that B&B has undertaken a major expansion that will change its expected free cash flows to in -$10 million in 1 year, $20 million in 2 years, and $35 million in 3 years. After 3 years, free cash flow will grow at a rate of 5%. W..

What implications do the movements in gold prices : What explains the relative stability of the price of gold from 1968 to 1971? What implications do the movements in gold prices since 1971 have for an attempt to reestablish a gold standard?

Drake companys income statement : Drake Company's income statement for the most recent year appears below:

Economies-of-scale to reduce the average cost per case : But now assume that the additional volume does not enable enough economies-of-scale to reduce the average cost per case as much as originally anticipated. Assume now that the average cost per case drops only to $95. What is the new required price?

What problems might a country experience as a result : An article in the Economist notes that after the end of the Bretton Woods system: "The Europeans did not like leaving their currencies to the whims of the markets." What does it mean for a country to leave its currency to the "whims of the markets..

Lower price in return for sending a larger volume of patient : Notice that managed care plan #1 receives a much lower price in return for sending a larger volume of patients. Managed care plan #2 (MC#2) wants to pay a lower cost per case and is willing to send 250 more patients (350 total from MC#2) to the clini..

List and describe briefly the elements of product design : List and describe briefly the elements of Service Design. Consider a service industry and create a short service blueprint, a series of events that has at least 5 steps. Then describe each step with a short paragraph under each step.

User Account

All Pages